Join our opportunity register

The Melbourne property market is falling. As a buyer you now have the upper hand.
Sign up to be notified as soon as we discover a great buying opportunity that can’t be missed. Read more about this register.



News

The latest happenings in the Melbourne property market. For our Essays and The Secret Agent Report, see our Research page.


The Most Overlooked Element of Urban Design – Places to Sit

When an empty train pulls in to Flinders Street Station, the first thing people look for is a place to sit down for their journey home. If they are lucky enough, they will score a seat before there is no longer any sitting space available. As much as prolonged sitting isn’t great for our health, most of us would prefer to sit than to stand. This is not just on the train ride home; we prefer to sit to eat lunch, socialise, soak up the sun, or read a book.

“People tend to sit where there are places to sit.” – William H. Whyte

Sittable space is something that is easily overlooked in urban planning. It is one of the most important traits of great urban spaces according to William H. Whyte, a seminal figure in urban design thinking. Most of Whyte’s findings come from observing pedestrians going about their daily activities in the streets of New York City. In his film entitled “The Social Life of Small Urban Spaces”, Whyte describes what he means by sittable space and why it is so crucial. You can watch the film here.

Blog-1

Read the full post


Inner Melbourne’s Smallest and Largest Apartments

Map-01

Inner Melbourne’s apartments are getting tinier with each new development. But, how small is small? Secret Agent’s updated apartment index reveals that the average size of a 1 bedroom apartment is only 47sqm, and for the more popular 2 bedroom apartment the average size is 73sqm.

Read the full post


Inner Melbourne’s Most Affordable and Expensive Apartments

Map-blog

Secret Agent has updated its price per square metre index for secondary apartments in inner Melbourne. An additional 478 apartments have been added to the index so that it now consists of a total of 870 apartments which have sold between 1st January 2016 to 30th June 2016. The new average square metre rate for apartments in inner Melbourne is $8,679/sqm.

Read the full post


Bond Yield Update: August

“Record low interest rates”. This seems to be the headline of the year, having been used so many times it is hard to remember any other kind of interest rate. Each time we see this, expectations for another rate cut decrease momentarily, only to return to the same, pre-cut probability-levels after a few weeks.

Figure 1 paints a clear picture of a similar short-term outlook, yet weakening long-term expectations. While this graph does not include data since the rate cut (yields on 10 year treasuries have lifted a whopping 0.03% since the July levels shown in Figure 2), we can see almost identical movements at each maturity date from May to June and from June to July.

Blog-1
Read the full post


The Secret Agent Report – Recreating Period Homes

We have just released our latest Secret Agent report!

The original period homes that remain in Melbourne are frequently purchased for record-setting prices. It is difficult to quantify the value of character, however it is possible to estimate how much these houses are truly worth if we were to build them from scratch today.

This month, Secret Agent investigates the cost of rebuilding two period homes in inner Melbourne. We demonstrate that the prices paid for period property fairly represent the quality, history and scarcity of these types of homes in today’s market

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Recreating Period Homes report now!


Bride and Bridesmaid Suburbs

Suburbs such as Fitzroy and East Melbourne have historically strong capital gains. Conventional wisdom is that by investing in neighbouring suburbs that have lower median prices, an investor would achieve stronger growth than in the blue chip suburb. This is because they would benefit from the spillover effect of buyers being unable to afford the blue chip locations and the subsequent gentrification of the suburb. This bulletin aimed to test if this is the case by analysing the growth of 5 bride and bridesmaid suburb pairs in inner Melbourne.

blog-3
A bride suburb is a relatively expensive suburb with good capital gains. It may be out of reach for a large proportion of property investors due to the high entry point.

blog-4
A bridesmaid suburb is a neighbouring suburb that boasts a lot of the qualities that make the bride such a good investment, yet with properties selling for much lower prices.

To compare, the median sale prices and annual growth rates since 2011 for all suburbs shown in Figure 1 were gathered. These suburbs were divided into suitable pairs, based on locality and differences in median prices. The results are shown in Table 1.

Read the full post


Sustainable Urban Landscapes

Sketch

Secret Agent recently reported on sustainability and looked at various ways sustainable features can be incorporated in the design of commercial or residential buildings. In this post, we take a look at sustainability from an urban planning perspective. Sustainability in the urban setting is about “finding new and better ways to achieve the same or better functionality, new materials and new technologies” as demonstrated in the following emerging trends.

Read the full post


7 Tips for Downsizers

Downsizing has been a major trend in the global property market over the past few years, one which continues to this day. Secret Agent has covered the topic extensively in the past. We have helped numerous people not only find their perfect home to downsize to, but also with the overall process of downsizing from a large property into a significantly smaller one.

Here are our top tips for people thinking about downsizing in the near future:

1. Consider location.

Downsizers will often be moving from a large block in a quiet street to a smaller block or even an apartment which is a lot closer to a neighbouring property, busy roads and transport. If you are not used to noise, then you might want to pay close attention to your surroundings and consider the potential noises that could disturb you at various times of the day.

This is the same for privacy. Take a walk around the perimeter of the property and consider what you can see inside. This is what other people will be able to see when you are living in there.

2. Choose a suburb that suits you.

Each inner city suburb of Melbourne has a culture of its own. Whilst most offer good lifestyle amenity in terms of access to public transport, cafes and restaurants, you should spend some time in the suburb of interest to ensure that the feel is right for you. For example, if you are used to living in an established, upmarket suburb, then an area that is still gentrifying may not be right for you. If you want to be near the beach and CBD, then you should consider suburbs such as Port Melbourne or Albert Park.

Read the full post


Capital Growth Update: June

The capital growth index is a very accurate way of measuring the long-term returns on an investment in the property market. It removes a lot of the noise usually present in real estate statistics, such as construction or renovations, a lot of large or small houses being sold and seasonality.

Median capital growth is based on the resales of the same property over different time periods (see methodology for more detail). Over the second quarter of 2016, inner Melbourne capital growth was 1.63%, or 6.67% when annualised. This is slightly lower than the median of 6.80%% over 2015, but above the five-year median of 6.31%.

Read the full post


The Secret Agent Report – Urban Spaces

We have just released our latest Secret Agent report!

Cities with dynamic streetscapes make inner city living attractive to many, and inevitably stimulate the growth of property prices as demand becomes greater. Arguably, what makes a city liveable is the quality of its public spaces.

As Melbourne’s city apartments continue to grow in number, and yet shrink in size, it is important that we maintain the desirability of public, shared spaces for mutual enjoyment.

This month, Secret Agent wanted to find out what differentiates a great urban space from the rest.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Urban Spaces report now!

Urban-Spaces-980